EcoSmart Energy Management Solution Installed in World’s Largest Hyatt Place

EcoSmart Energy Management Solution Installed in World’s Largest Hyatt Place

The Hyatt Place - Waikiki Implements Telkonet’s Innovative New EcoRemote

June 20, 2012: Milwaukee, WI – Telkonet, Inc. (OTC BB: TKOI.OB), developer of the revolutionary EcoSmart energy management platform incorporating patented Recovery Time™ technology announced today that Pacific Energy Services & Facilities, Inc., a Telkonet partner, completed the sale and installation of an EcoSmart energy management solution at the 426-room Hyatt Place - Waikiki in Honolulu, Hawaii. The installation featured the first usage of the EcoRemote, an infrared transmitter developed by Telkonet to operate any remote-controlled HVAC unit with an on-the-wall thermostat.

Pacific Energy installed Telkonet’s EcoRemote inside mini-split HVAC systems at the Hyatt Place to allow for convenient guest control from EcoSmart thermostats. Additionally, the EcoRemote enables Telkonet’s patented Recovery Time™ technology to maximize energy savings in an unoccupied room without compromising guest comfort. Through Recovery Time™’s constant monitoring of an HVAC unit’s ability to drive temperature and the real-time adjustment of setback temperature, rooms are never excessively hot or cold when a guest returns.

In addition to providing EcoRemote modules, Telkonet worked with Pacific Energy to install EcoWave intelligent thermostat packages, EcoView occupancy sensors and EcoContact door contacts. The door contacts, installed on patio doors, stop in-room HVAC units from running when a patio door is open to prevent the units from being overworked and provide additional runtime savings.

“Telkonet continues to innovate with EcoSmart technology, constantly offering new ways to integrate energy management solutions and provide substantial energy savings,” said Troy Hartmann, President of Pacific Energy. “The Hyatt - Waikiki is the fourth Chartres Lodging Group property on which Pacific Energy has collaborated with Telkonet, and I look forward to continuing that partnership.”

The Hyatt Place - Waikiki includes the 191-room Pali Tower and the 235-room Diamond Head Tower, which makes the hotel the largest Hyatt Place in the United States. Both towers installed complete EcoSmart energy management solutions. Since installation in April of 2012, the Hyatt Place has saved over 455,000 kWh with EcoSmart.

ABOUT HYATT PLACE

Launched in 2006, Hyatt Place brings to the upscale select-service hotel category the authentic hospitality for which Hyatt is known. Inspired by multitasking travelers’ 24/7 lifestyle, Hyatt Place combines stylish design and practical amenities with forward-thinking technology and purposeful service.

About Pacific Energy Service

Pacific Energy Service is a diverse company that specializing in energy conservation projects and hotel renovation projects nationwide including Hawaii and the Caribbean. In addition to installing energy-conserving thermostats, the company also installs solar heating solution and computerized boiler controls. In business since 2004, Pacific Energy works mainly in the hospitality, military and education market segments. For more information, visit www.pesfinc.com

About Telkonet

Telkonet, a leading United States-based energy management technology provider, offers hardware, software and services to commercial customers worldwide. The EcoSmart suite of products, which includes EcoInsight and EcoWave intelligent thermostats, the EcoGuard energy management outlet and the EcoSwitch energy-efficient light switch can be deployed in most building environments to cut utility costs and enable remote monitoring and control using the EcoCentral management platform.

Telkonet's energy management products have the power to reduce energy consumption, minimize carbon footprints and help eliminate the need for the construction of new power plants. For more information, visit www.telkonet.com.

Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand and the Company's ability to obtain new contracts and accurately estimate net revenue due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors that could affect the Company's financial results, can be found in the Company's Registration Statement and in its Reports on Forms 8-K filed with the Securities and Exchange Commission (SEC).

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